In today’s article we bring a complete guide on how to invest in cryptocurrencies, step by step, with the Binance platform. It is an excellent platform to invest in cryptocurrencies for speculators who are looking to obtain an extraordinary and unusual return (of several hundred or even thousands of % in a very short term) as long as they are willing to face the volatility (and potential loss of invested capital) inherent in cryptocurrencies.
Why use Binance
As we have already explained in this other article, we consider Coinbase to be the best platform to invest in the main cryptocurrencies of the moment. Through Coinbase we can currently buy and sell Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
Although they are expected to add more coins in the coming months, there is no concrete date for it nor is it known exactly which cryptocurrencies they will add to the platform. Therefore, if you want to invest in other more “exotic” cryptocurrencies, you have to look for alternatives.
Our preferred platform for this is Binance, which is a cryptocurrency exchange platform. The main reasons that justify our choice are the following:
- Very low commissions: Probably one of the best things Binance has is commissions. At the moment the commissions are only 0.1% of the transaction price, and you can even get a 50% reduction if you buy or sell cryptocurrencies using the BNB token.
- Reliability: it is a platform that has had an impressive exponential growth in recent months and has overtaken other well-known platforms in the highest positions of the ranking. This trust of so many users means that they must protect the platform to the maximum from all kinds of cyberattacks and that they are constantly improving it. Therefore, it can be considered a relatively safe platform for investing in cryptocurrencies (below we explain how to easily protect your cryptocurrency investment as much as possible).
- Availability of a large number of different cryptocurrencies: through Binance you can invest in a large cast of cryptocurrencies. In fact, they offer more cryptocurrencies than you’ve even heard of (about 140 different cryptocurrencies can be bought and sold right now).
- Possibility to schedule limit orders and stop orders: these types of orders allow the platform to automatically execute our buy or sell order at a price previously determined by ourselves. In other words, it offers peace of mind to the investor since he has the security of knowing that his order will be executed at the price that he himself has determined, and this without having to be constantly in front of his computer following the course of cryptocurrencies.
- Speed: being a cryptocurrency exchange platform, coin deposits and withdrawals are made instantly with a single click. Therefore, we do not have to wait several business days for the operation to be effective, as is the case when we use a bank to deposit funds (fiat currency).
However, we also see certain drawbacks:
- Relative complexity for a beginner: since it is a cryptocurrency exchange platform and not simply buying and selling cryptocurrencies with fiat currency (euros, dollars, pesos, etc.) as Coinbase is, Binance has a certain complexity for a beginner. That said, in this comprehensive guide we are going to explain how to invest in cryptocurrencies step by step with Binance, so we will explain any complexity that this platform may present for beginners.
- Need to acquire a physical cryptocurrency wallet to secure our coins to the maximum.
- Deadline to open an account in case of excessive influx: in case of excessive influx (as was the case at the end of 2017 when the price of cryptocurrencies skyrocketed and everyone wanted to buy cryptocurrencies), the platform can become saturated, which generates significant delays to open the account. Therefore, you usually have to count between a few hours and a few days until the account is fully operational.
In our opinion the advantages of using Binance to invest in cryptocurrencies outweigh its drawbacks. If you also think the same thing we encourage you to continue reading since below we explain how to buy and sell cryptocurrencies through Binance step by step. Invest in cryptocurrencies through Binance step by step
Below we explain, step by step, how to invest in cryptocurrencies using Binance.Step #1. Create an account
The first thing to do is to create an account, which takes just a few minutes. To do this, click on this link.
To register you will have to give your name and your e-mail. It is very important that you put a strong password and that you activate two-stage authentication (“2FA”) with Google Authenticator to ensure that your Binance account is as secure as possible. All this should not take more than 3-5 minutes. Step #2. Transferring Cryptocurrencies to Binance
As Binance is a cryptocurrency exchange platform, in order to buy “exotic” cryptocurrencies you first have to transfer other more “settled” cryptocurrencies to your Binance account.
The simplest thing is that you buy either Bitcoin or Ethereum using Coinbase. In this other article we explain step by step how to do it, you will see that it is really simple.
The next step is to transfer your Bitcoin or Ethereum from your Coinbase account to your Binance account. To do this you have to click on “funds”, and then on “deposits”.
From the list of cryptocurrencies that we can select from the list of “select deposit coin”, we select the one that interests us to make the deposit. As an example we choose Ethereum and see the following screen.
We simply have to copy the address that appears under “ETH Deposit Address” and paste it into Coinbase. More specifically, once in Coinbase we click on “accounts” and “send” Ethereum, as we see in the following image.
The following screen then appears. We simply have to paste in “recipient” our deposit address that we had previously obtained in Binance, and indicate the amount we want to send.
This whole process is much simpler than it seems and is done in a couple of minutes, because the transfer is automatic and the funds arrive instantly to our Binance account.Step #3. Buying cryptocurrencies
Once our Binance account already has funds in Bitcoin or Ethereum, we can start exchanging our cryptocurrencies for other more exotic cryptocurrencies.
For the examples that we are going to see below we are going to use Ripple, which is currently the third cryptocurrency with the highest capitalization (to see the updated list you can consult the Coinmarketcap page). But on Binance you can buy a number of other cryptocurrencies (currently about 140) such as EOS, Cardano, IOTA, NEO, Dash and Monero, to name just a few of the most important in terms of capitalization.
To make the purchase there are two “interfaces” (called “exchanges”), the basic and the advanced. The basic one is more than enough (unless you’re a true cryptocurrency expert), so that’s what we’re going to focus on here.
Below we see how to get to the place where we can buy Ripple with our Ethereum that we have sent from Coinbase: you have to click on “exchange”, “basic” version, then look for ripple (XRP) in the magnifying glass and on the right of the whole we indicate Ethereum because it is the cryptocurrency that we are going to use to buy Ripple.
Once we’ve done all that, we see that the price of Ripple at the time we wrote this article was equivalent to $0.77. It is then time to buy our cryptocurrencies.
There are three types of orders to acquire cryptocurrencies:
- Limit orders: in this case we indicate the maximum price at which we want to acquire the cryptocurrencies. In this case it could be, for example, a maximum of $0.80.
- Market orders: in this case we acquire the cryptocurrencies at the price at which the currency in which we enter our order “quotes”. In this case it would be $0.77.
- Stop-limit orders: in this case we indicate a price range, where the stop price is the lower price and the price limits the maximum price at which we want to acquire the cryptocurrencies. For example, the order could be a range between $0.75 and $0.80.
